Tesla’s profit fell 55% due to falling vehicle sales revenue

Tesla’s net profit fell 55% to $1.129 million (about 1.054 million euros) in the first quarter of 2024 after revenue fell 9%, the electric vehicle maker said on Tuesday. The company’s total revenue, including its energy storage business, was $21.301 billion. In the first three months of 2023, revenue was $23,329 million.

More pronounced was the 13% drop in vehicle revenue, rising from $19,963 in the first three months of 2023 to $17,378 million in the same period in 2024. The company acknowledged that part of the decline in revenue is a consequence of lowering the prices of its cars to stimulate demand.

In early April, Tesla began slashing prices on its U.S. vehicles by up to $7,000 after its sales fell 8.5% to 386,810 units in the first quarter of the year. In a statement to investors, the company also said that from January to March this year it faced “numerous challenges” such as the conflict in the Red Sea (through which much of its international cargo passes) as well as an “arson attack” at its Berlin Gigafactory.

Tesla added that sales of electric vehicles around the world are “under pressure” as many automakers are prioritizing the production and sale of hybrid vehicles over electric ones. In addition, the company’s profitability in the first quarter was negatively affected by increased production of the Cybertruck pickup truck.

The automaker added that it would speed up the launch of new models, which was originally planned for the second half of 2025, although it did not specify dates.